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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) September 18, 1996
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THE GEON COMPANY
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(Exact name of registrant as specified in charter)
Delaware 1-11804 34-1730488
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
One Geon Center, Avon Lake, Ohio 44012
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 216-930-1241
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Not Applicable
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(Former name or former address, if changed since last report.)
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Item 5. Other Events
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On September 18, 1996 the company announced that it was lowering its 3rd
quarter, 1996 earnings as a result of reduced margins in polyvinyl chloride
resins and recent vinyl chloride monomer manufacturing problems.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
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Exhibit 99, the text of The Geon Company press release dated September 18, 1996,
is fixed herewith as a part of this Report.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE GEON COMPANY
By /s/ Gregory L. Rutman
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Gregory L. Rutman
Secretary
Dated September 20, 1996
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EXHIBIT 99
GEON LOWERS EARNINGS ESTIMATE
Cleveland, Ohio - September 18, 1996 - The Geon Company (NYSE: GON) today
announced that a decline in cash margins in polyvinyl chloride (PVC) resins, as
well as recent vinyl chloride monomer (VCM) manufacturing problems, will result
in third-quarter earnings below previously anticipated levels. The Company
expects earnings to be $0.10 to $0.20 below second-quarter 1996 earnings of
$0.40 per share.
PVC resin margins, selling price less cost for chlorine and ethylene, have
eroded from the second quarter despite continued good customer demand. The
Company's previously announced July 1, 1996, price increase of $0.04 per pound
did not go into effect as expected in either July or August. Concurrently,
chlorine and ethylene costs increased during the first two months of the third
quarter. The Company expects third-quarter margins over raw material costs to be
below the second quarter.
The Company's newly expanded LaPorte, Texas, VCM plant has encountered problems
associated with new equipment installed earlier this year. These issues have
limited VCM production to less than full capacity, increased operating cost and
required higher-than-anticipated purchases of VCM. The cause of the problems has
been identified and full operating rates are now being attained. The total
impact on the current quarter's earnings is estimated to be $0.05 per share.
The Geon Company, a leading producer of PVC resins and compounds, is
headquartered in Avon Lake, Ohio.
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Media & Investor Contact: Dennis Cocco
216-930-1538
Investor Contact: Tom Waltermire
216-930-1222
